Donear Industries Recommends Dividend of Rs. 0.20 Per Share; TDS Obligations Detailed Under New Tax Provisions
Donear Industries Limited has recommended a final dividend for its shareholders, setting forth the applicable tax deductions and procedural requirements under the new provisions of the Income-tax Act, 2025 (as amended by Finance Act, 2026). The Board of Directors had approved the recommendation during a meeting held on May 30, 2026.The recommended final dividend stands at Rs. 0.20 per equity share, which represents 10% of the face value of Rs. 2/- for the Financial Year 2025-26.
Tax Deduction at Source (TDS) on Dividend
As stipulated by the Income-tax Act, 2025, dividend distributed by a company is taxable in the hands of the shareholders, necessitating the deduction of tax at source (TDS). The communication details the tax implications based on the status of the shareholder.Resident Shareholders' Tax Implications:
For resident individual shareholders, no TDS will be deducted if the total dividend received during a financial year does not exceed Rs. 10,000/- for the tax year 2026-2027. For dividends exceeding this threshold, the applicable rate depends on compliance and status:
| Particulars | Applicable Rate | Documentation Requirement (If Applicable) |
|---|---|---|
| Resident Shareholder with PAN | 10% | Shareholders must update or verify their PAN and residential status with depositories or the Company's Registrar and Transfer Agents. |
| Submitting Form 121 | NIL | Declaration in Form No. 121 is required for individuals (who are not companies or firms) meeting specific conditions. |
Non-Resident Shareholders' Tax Implications:
The applicable TDS rates differ based on the type of non-resident investor:
| Shareholder Category | Applicable Rate | Key Requirements |
|---|---|---|
| Foreign Institutional Investors (FIIs) | 20% plus applicable surcharge and cess | Shareholders must update or verify PAN and legal entity status with the relevant RTA. |
| Portfolio Investors (FPIs) | Specific rate depends on declaration | FPIs must provide a declaration detailing whether the investment was made under the general FDI route or the FPI route. |
| Other Non-resident Shareholders | 20% plus applicable surcharge and cess OR Tax Treaty Rate (whichever is lower) | Applicable rates are subject to satisfactory review of submitted documents, including PAN, Valid Tax Residency Certificate (TRC), and Digital Form 41 filing. |
Procedures for Lower or NIL Withholding Tax
Shareholders seeking a benefit from non-deduction of tax at source must submit prescribed declarations within the stipulated timeframe. The deadline for submitting the required documents to enable appropriate TDS rate determination is September 4, 2026, at 5:00 p.m. IST.The company advises shareholders that any documentation received after this cutoff date will not be considered for tax deduction on the dividend payment.
TDS Implications of PAN and Bank Details
PAN and Aadhaar Linkage:The Act requires linking a Permanent Account Number (PAN) with Aadhaar. Failure to comply means the PAN may be deemed invalid, resulting in tax being deducted at 20% as per Section 397(2).
Bank Account Updates:
Shareholders are urged to ensure that their bank account details are fully updated across all accounts and folios to facilitate timely dividend credit. For physical folio holders, the company notes regulatory mandates requiring payment via electronic mode after furnishing necessary documents including PAN, choice of nomination, contact details, bank account information, and specimen signature.
DONEAR Stock Price Movement
On Friday, Donear Industries Limited shares shed 1.91% in trading, closing at ₹87.25 after falling ₹1.70 from the previous day's close. The stock traded with a volume of 11,988 shares during the historical period.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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